Chrysler LLC, which is requesting $7 billion in loans before the end of 2008, is probably in the worst shape out of Detroit’s Big 3. According to CSM Worldwide forecasters, Chrysler does not have the power to survive as standalone automaker with or without government funding.
“It would be best for everyone involved if Chrysler were allowed to gracefully wind down and go away in a controlled, staged process, leaving a Detroit Two” Michael Robinet, CSM vice president of global vehicle forecasts, said at an Automotive Press Association event.
However, CSM’s CEO Craig Cather was quick to point out that the problem is not all Chrysler’s fault. He said the Daimler, which owned Chrysler before Cerberus took over, “handicapped Chrysler and its ability to expand internationally.”
The first $15 billion of the bailout, which should be approved for the auto industry later this week, are expected to be split between GM and Chrysler.
Nardelli – if you’re reading this we suggest you start kissing up to Wagoner or Ghosn for a possible merger.
Source: Detroit News